Authorize Purchase of Seven Pieces of Earth-Moving Equipment from Holt Texas LTD d/b/a Holt Cat, LLC, in the Amount of $396,121.00, Using a Cooperative Contract for Various Departments Through the Property Management Department (ALL COUNCIL DISTRICTS)

It is recommended that the City Council authorize the purchase of seven pieces of earth-moving equipment from Holt Texas LTD d/b/a Holt Cat., LLC, in the amount of $396,121.00, using Buyboard Contract No. 521-16 for various departments through the Property Management Department.

The Transportation and Public Works Department, Park and Recreation Department and the Water Department will use the requested equipment which includes six skid steer units, one excavator and one tree spade for construction and repair of City streets and stormwater drain systems, as well as for forestry work. The new equipment will replace old equipment that can no longer be economically maintained. The old equipment will be sold at auction upon delivery and acceptance of the new equipment.

The new units meet required specifications and are expected to operate satisfactorily during their service lives of 11 years and 5,000 hours for each piece of equipment. Warranty information, manufacturer's Statement of Origin and original sales invoice will accompany the new equipment upon delivery to the 4100 Columbus Trail facility.

TOTAL OWNERSHIP COST - $519,522.00, over service life of 11 years (see attached tabulation).

PRICE ANALYSIS – The pricing is three percent lower than pricing from a similar purchase awarded in 2013 (M&C P-11484). Staff has reviewed the prices and found them to be fair and reasonable based on current market values.

DELIVERY - The equipment will be delivered within 120 days after receipt of a purchase order.

COOPERATIVE PURCHASE - State law provides that a local government purchasing an item(s) under a Cooperative Purchasing Agreement satisfies state laws requiring that the local government seek competitive bids for purchase of the item(s). BuyBoard contracts have been competitively bid to increase and simplify the purchasing power of government entities.

ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager in the amount up to $99,030.00 and does not require specific City Council approval as long as sufficient funds have been appropriated.

M/WBE OFFICE - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible.